Oil prices rose on Wednesday as ongoing cuts of piped Canadian crude oil to the United States added to falling U.S. crude inventories, while expectations of a prolonged OPEC-led production cut also offered support.
Crude oil prices jumped in Asia as industry estimates of US crude supplies offered solid support but await confirmation from official data from the government later on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were at $57.68 a barrel, up 85 cents, or 1.5 percent from their last settlement.
Brent crude futures, the international benchmark for oil prices, were at $62.97 per barrel, up 40 cents, or 0.6 percent.
Traders said the firm price lift was due to drop in crude supplies from Canada to the United States.
TransCanada Corp said it will cut deliveries by at least 85 percent on its 590,000-barrel-per-day (bpd) Keystone crude pipeline through to the end of November. The pipeline, which links Alberta’s oil sands to U.S. refineries, was shut last week after a 5,000-barrel spill in South Dakota.
Resultantly Oil sector (OGTI) in the Pakistan Stock Exchange was up by +240 points.
Traders said there was also some price support from a weekly report on Tuesday by the American Petroleum Institute which said U.S. crude inventories fell by 6.4 million barrels in the week to Nov. 17.
The latest official U.S. production and inventory data is due on Wednesday.
Outside North America, markets have been supported by an effort led by the Organization of the Petroleum Exporting Countries (OPEC) to restrain output in a bid to end a global supply overhang.